Could Acquiring the Satellite Communications Company Globalstar Send Amazon Stock Soaring?

Reports say Amazon (AMZN.OQ) has held talks to acquire satellite operator Globalstar for about $8.8 billion. While the deal could expand Amazon’s Project Kuiper and AWS edge/IoT capabilities, the article argues a takeover would likely be a negative for Amazon’s stock: Globalstar is unprofitable, generated $273 million in 2025, and an $8.8B bid implies roughly 32x trailing sales. Amazon is already down ~8% year-to-date amid heavy planned tech and AI spending, and convincing large shareholders (Apple owns ~20% of Globalstar) could require an even higher premium. The piece concludes that, despite strategic rationale, a purchase would probably drag AMZN shares rather than send them soaring.